Question on: JAMB Commerce - 2024
The components of a balance of payments account are
A
Capital, current and fixed deposit
B
Current, capital and monetary movement
C
Capital, savings and fixed deposit
D
Current, savings and monetary movement
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Correct Option: B
The components of the balance of payments account are:
- Current Account: Records transactions related to the import and export of goods and services, as well as unilateral transfers (gifts, grants, etc.).
- Capital Account: Records transactions involving the purchase and sale of assets, such as foreign direct investment, portfolio investment, and changes in foreign assets held by domestic residents.
- Monetary Movement (or Financial Account): Shows changes in a country's holdings of gold and foreign currency and the impact of these changes on the balance of payments.
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